Founded in 1998, Alphabet Inc. (GOOG) sells stocks at $2091 a piece in the Nasdaq. The company, which is headquartered in Mountain View, CA, provides online advertising services in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It offers performance and brand advertising services.
GOOG operates through Google and Other Bets segments. The Google segment offers products, such as Ads, Android, Chrome, Google Cloud, Google Maps, Google Play, Hardware, Search, and YouTube, as well as technical infrastructure.
According to recent filings, 132,121 employees work for Alphabet Inc. With sales growth of 13%, GOOG reports EBITDA growth of 5%. I think that value investors will most likely have a look at the company. In addition, operating income is another excellent financial figure. The company’s operating income grows at 20% y/y.
As more investors get to know these financial statistics of GOOG, the stock demand will increase. Besides, investors will most likely appreciate that GOOG’s EPS grew a 20%. With this in mind, I believe that GOOG is interesting.
Regarding the share count, I appreciate that the shares outstanding decreased a -2%. As a result, the intrinsic valuation of each share increased.
GOOG’s EV/Operating cashflow is equal to 12x. I cannot understand why the company trades cheap. That’s not all. GOOG’s debt to equity ratio is below 2x. Evidently, the debt level is under control.
With 299 million shares outstanding, at $2091.08 per share, the market capitalization is equal to $658-$595 billion. In Q4, GOOG reported quarterly sales of $56 billion. If we assume sales of $5 billion, the company trades at 2.9x sales, which does not look undervalued.
Disclosure: We don’t own GOOG shares.
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